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Pakistan–Afghanistan bilateral trade plunges 53% in first half of fiscal year

The steep drop is largely attributed to the closure of key crossings following clashes on October 11, which disrupted trade flows between the two neighboring countries.

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Bilateral trade between Pakistan and Afghanistan declined sharply by 53 percent during the first half of the current fiscal year (July–December 2025–26), falling from $1.26 billion to $594 million, according to a report by Pakistani newspaper The Nation.

The steep drop is largely attributed to the closure of key crossings following clashes on October 11, which disrupted trade flows between the two neighboring countries.

During the period under review, Pakistan’s exports to Afghanistan fell by 55 percent, dropping from $754 million to $336 million. Imports from Afghanistan also registered a significant decline, falling by 49 percent to $258 million.

Earlier, Afghanistan’s Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar, said the country had expanded economic engagement with other regional partners amid the crossing closures. He stressed that trade with Pakistan would resume only if permanent assurances were provided to keep trade routes open.

The sharp contraction underscores growing strains in Pakistan–Afghanistan trade relations and highlights the economic impact of prolonged crossing disruptions.

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UAE firm eyes investment in Salang’s second tunnel and pharmaceutical factories

The proposals will be submitted to the Inter-Ministerial Investment Committee for further review and discussion.

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A United Arab Emirates-based company, HHM Global Industry Group, has expressed interest in investing in the construction of the second Salang Tunnel and establishing pharmaceutical factories in Afghanistan.

The issue was discussed at a regular meeting of the Inter-Ministerial Investment Committee, held on September 8, 2026, at the Marble Palace under the Economic Deputy Office of the Prime Minister’s Office.

The committee welcomed the company’s interest in investing in Afghanistan and assured its representatives that the relevant ministries and government agencies are prepared to provide comprehensive cooperation.

Following extensive discussions, company officials were asked to prepare detailed investment proposals for the construction of the second Salang Tunnel, pharmaceutical manufacturing facilities, as well as other potential investment projects.

The proposals will be submitted to the Inter-Ministerial Investment Committee for further review and discussion.

If implemented, the proposed investments could contribute to the development of Afghanistan’s transport infrastructure and strengthen domestic pharmaceutical production.

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Saudi energy group signs major Afghanistan deals covering gas exploration and pipeline plans

The agreements cover exploration across the Kushk and Tirpul contract area in Herat, spanning approximately 23,317 square kilometers.

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Saudi Arabia’s Delta Energy Group has signed a series of agreements with Afghanistan’s Ministry of Mines and Petroleum covering hydrocarbon exploration, natural gas utilization in Herat and a proposed regional gas pipeline.

According to a statement issued by Delta Energy on September 6, the agreements cover exploration across the Kushk and Tirpul contract area in Herat, spanning approximately 23,317 square kilometers.

Under the agreements, Delta Energy will conduct geological and geophysical studies, seismic surveys, exploration drilling and reservoir evaluations to determine the scale and commercial potential of Afghanistan’s hydrocarbon resources.

The company will also finance a study on the utilization of natural gas for Herat Industrial Park, Herat city and other approved areas, including potential applications in industry and power generation.

A separate agreement provides a framework to assess the proposed 700-kilometre CentGas “Corridor of Prosperity” pipeline, which would potentially connect a gas receipt point near Guzara district in Herat with a delivery point near Spin Boldak in Kandahar.

Delta Energy estimates the proposed pipeline could require about $10 billion in investment over 10 years, subject to technical and economic feasibility, financing, regulatory approvals and a final investment decision.

The company said the broader integrated programme could represent tens of billions of dollars in potential investment over the coming years, covering exploration, field development, gas utilization and related infrastructure. However, all subsequent phases will depend on exploration results, commercial viability, financing and required approvals.

Sheikh Badr Mohammed Al-Aiban, chairman of Delta International Holding Group, said the project was more than an oil and gas investment, describing it as an opportunity to develop an integrated energy ecosystem that could create jobs, support industry and improve regional connectivity.

Afghanistan’s Minister of Mines and Petroleum, Hidayatullah Badri, welcomed the agreements, saying cooperation with Delta Energy could help advance exploration of the country’s hydrocarbon resources, strengthen energy security and support economic activity.

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Imam Abu Hanifa exhibition to draw exhibitors from more than 20 countries

Representatives from more than 20 countries are expected to attend, including Russia, India, Türkiye and Japan.

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The fifth Imam Abu Hanifa National and International Exhibition will be held in Kabul from October 7 to 13, the Afghanistan Chamber of Commerce and Investment (ACCI) says.

Representatives from more than 20 countries are expected to attend, including Russia, India, Türkiye and Japan.

Ahmad Shakil Hazim, ACCI’s Deputy for Policy and Technical Affairs, said the exhibition would give traders, investors and producers an opportunity to showcase their products and expand business ties with international markets.

Economic experts say international trade exhibitions can strengthen commercial relations between Afghan and foreign businesses and help attract investment.

The fourth edition of the exhibition was held in Kabul last year, with officials saying trade agreements and contracts worth more than $700 million were signed between Afghan and foreign traders on the sidelines of the event.

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